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2mo ago

Centrica and Energy Capital Partners Secure £1.5bn Deal for Isle of Grain LNG Terminal

It marks a strategic shift toward predictable, inflation-linked infrastructure cashflows underpinned by a decade-long LNG supply pact pending regulatory approval

The Isle of Grain terminal was put up for sale in May last year and National Grid hoped to raise £2 billion
Brendan Blumer (centre left) Bullish chairman, and Tom Farley (centre right), chief executive, celebrate after ringing the opening bell at the New York Stock Exchange
Amanda Blanc, the Aviva chief executive, said all parts of the business had been trading well in the first half of the year
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Overview

  • The 50:50 joint venture will fund the £1.5bn acquisition with about £1.1bn of non-recourse project finance debt, cutting Centrica’s equity requirement to roughly £200m for its stake.
  • Grain LNG’s full capacity is contracted through 2029, with over 70% secured to 2038 and more than half to 2045, providing long-dated, inflation-linked revenues.
  • Centrica has locked in a 10-year LNG supply agreement with Devon Energy starting in 2028, aligning upstream sourcing with its terminal investment.
  • National Grid is reallocating proceeds from the sale to support multibillion-pound investments in electricity network upgrades under its portfolio streamlining strategy.
  • The transaction awaits customary national security and regulatory clearances and is on track to close by the end of 2025.